TMI Blog2010 (7) TMI 1121X X X X Extracts X X X X X X X X Extracts X X X X ..... 974-CII of 2010 has been filed, proposing following amended questions of law:- (i) Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal is justified in allowing depreciation on capital assets, when capital expenditure relating to acquisition of such assets had already been allowed as application of income for the purpose of allowing exemption under Section 11 of the Income Tax Act, 1961 and as such further allowing of depreciation on these capital assets will amount to double deduction for the same expenditure. (ii) Whether allowing of depreciation on the capital assets by the Income Tax Appellate Tribunal is justified in the light of the Hon ble Apex Court Decision in the case of Escorts Indi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tate Electricity Board, relying on the communication dated 20.1.2003 of the Haryana Government that principal amount of FDRs of Market Committees with HSEB be returned to the concerned Market Committees, but ignoring the remaining part of the communication which says that the matter regarding interest on these deposits will be considered after repayment of principal, which means that right of interest on the advance/deposit made by the assessee with HSEB did not stand waived and as such the same had accrued to the assessee during the year ? 2. The assessee is a statutory body constituted under the provisions of the Punjab Agricultural Marketing Produce Act, 1961 to regulate the marketing of agricultural produce and is registered under Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mixed system of accounting affects the position stated by the assessee. Even if it is accepted that the assessee is following the mixed system of accounting, there is no reason as to why the income from the deposits in question is liable to be assessed on accrual basis. However, even if we accept the plea of the assessing officer on the system of accounting, yet the assessee has placed on record material to show that no interest income has actually accrued to it. The communication from the Government of Haryana, which has also been referred to by the CIT(A) in para 10 of his order, clearly points out that payment of interest to the assessee is not decided by the government. Thus, to say that any income by way of interest has accrued to the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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